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  "documentTitle": "iQIYI, Inc. (IQ)",
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  "authorName": "Wolfpack Research",
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  "presentationDate": "2020-04-07 00:00:00",
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  "notes": "The slide uses a forensic accounting approach to highlight discrepancies between government filings and public company disclosures.",
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      "kind": "callout",
      "text": "While it appeared IQ was winding down its advertising revenue inflation in 2017 in preparation for its IPO, IQ's ad revenue inflation nearly tripled to RMB 1.537 billion in 2018.",
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      "text": "Advertising Revenue Overstatement: RMB 5.155 billion",
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      "text": "The Shanghai government publishes reports showing the biggest advertising companies. The rankings are based on advertising revenues reported to the Shanghai SAIC office. Based on these 2015 - 2018 reports, we conclude that IQ’s SEC filings contain cumulative estimated advertising revenue overstatements of RMB 5.155 billion between 2015 and 2018.",
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      "text": "Notes on estimates and calculations: (1) The 2016 SAIC ad industry report did not include a list of top 10 internet advertisers. To generate an estimate, we applied the y/y growth rate of Shanghai iQIYI to Zhong Yuan...",
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      "kind": "source-note",
      "text": "52 IQ F-1 Prospectus, filed December 6, 2017; 53 IQ F-1 Prospectus, p. 5; 54 There was no 2016 SH SAIC report... 55 The revenue numbers in the Shanghai SAIC reports are shown net of VAT.",
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      "text": "Comparison of SAIC vs. SEC Reported Advertising Revenues",
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      "text": "Advertising Revenue Inflation",
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